By Brazil Stock Guide – WEG 4Q25 results show a company earning slightly less revenue, but still maintaining strong profitability. In the fourth quarter of 2025, revenue totaled R$ 10.2 billion, a drop of 5.3% compared to the same period a year earlier. The main reason was a slowdown in large solar power projects in Brazil and the absence of wind turbine deliveries.
Even with lower revenue, WEG preserved its margins. EBITDA — a measure of operating profit before interest and taxes — reached R$ 2.29 billion. Although that was 4% lower than a year ago, the EBITDA margin improved to 22.4%. In practical terms, for every R$ 1 in revenue, the company kept about R$ 0.22 in operating profit — slightly better than last year.
Net income totaled R$ 1.59 billion, down 6.3% year-on-year. The net margin stood at 15.5%, meaning WEG retained roughly R$ 0.15 of every R$ 1 sold as final profit. The company’s return on invested capital remained high at 32.5%, indicating that its investments continue to generate solid returns.
International operations helped cushion the domestic slowdown. Sales abroad grew in U.S. dollar terms, especially in North America and Europe, driven by demand for power transmission equipment and grid modernization. However, when converted back into reais, the stronger Brazilian currency reduced the reported growth.
Another important point is that WEG continued investing heavily in its factories and technology. During the quarter, the company spent more than R$ 800 million expanding and modernizing production capacity in Brazil, Mexico and China. These investments aim to increase efficiency and prepare the company for future demand.
Cash generation also remained solid throughout the year. Even after investments and dividend payments, WEG ended December with a positive net cash position, meaning it still holds more cash than debt. This financial strength gives the company flexibility to invest, acquire businesses or navigate tougher economic periods.
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